The merger will take effect after approval at the general shareholders' meetings of the companies and the new entity will operate under the name Nippon Steel Fine Tube Co., Ltd.
The integration aims to address the challenging business environment surrounding the mechanical tubing sector, such as the long-term decline in domestic steel demand, labor shortages, and the electrification of automobiles. In the past, the companies mainly leveraged their strengths in the automotive and construction machinery industries. However, through this merger, they aim to enhance efficiency, optimize production bases, and build a stronger corporate structure by consolidating management resources.
The merger will be executed in the form of an absorption-type merger, under which Nippon Steel Katakura Pipe will remain, while Tsurumi Pipe and Nippon Steel Pipe Fine Tube will be dissolved. The new company will be headquartered in Amagasaki City, Hyogo Prefecture, with a capital of JPY 100 million. The three companies together employ 391 people, and their combined sales are expected to reach JPY 23.574 billion for the fiscal year 2024.
Koichi Tatsuta, the current president of Nippon Steel Katakura Pipe, will serve as president of the new company. With this merger, the group aims to better respond to customer needs and strengthen its proposal capabilities in the mechanical tubing field for sectors such as automotive and construction machinery.
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